High-rank death-hunters: Ukraine's power stole money for defense under Poroshenko - Part 2

Author : 112 program Corruption League

Major corruption scandals of the time of Petro Poroshenko were associated with Ukroboronprom state defense concern. Find out the corruptive story about ex-MP Serhiy Pashynsky
16:51, 26 November 2019

Read the first part of the investigation here.

Serhiy Pashynskyi

Serhiy Pashynsky, Ukrainian MP of three convocations from the Batkivshchyna party, was elected to the Verkhovna Rada for the fourth time in 2014 from the People’s Front party and became the chairman of the Verkhovna Rada Committee on National Security and Defense. From March to June 10, 2014, he was acting head of the Presidential Administration of Ukraine. In 2014-2016 was Chairman of the Supervisory Board of Ukroboronprom state defense concern.

Pashynsky was a participant of the corruption scandals in the defense sector. In January last year, the Ukrainian Armored vehicles company received 8,3 million USD for implementation of the agreement with the Ministry of Defense for the supply of Wart armored vehicles. Payments were carried out secretly, without a tender outside the public Prozorro procurement system, citing state secrets. Serhiy Kuzma, a relative of the famous businessman Mykola Kuzma, who in 2014 was a volunteer assistant Pashynsky, is the owner of Ukrainian armored vehicles.

Related: Prosecutor General's Office gained access to calls made by Pashynsky’s son in December 31 shooting case

“Pashynsky now publicly says that he has nothing to do with Ukrainian armored vehicles. That it’s just a business related to his assistant,” anti-corruption activist Glib Kanevsky says.

However, a year after the signing of the secret contract, the Ministry of Defense went to court to recover penalties for breach of contractual obligations. The defendant is Ukrainian Armored Vehicles.

In February 2015, a new top manager, 24-year-old Anton Pashynsky, appeared at the state Spetstekhnoexport enterprise, which is a subsidiary of Ukroboronprom. He heads the Department of State Enterprise, which maintains tens of millions of dollars of military contracts between Ukraine and North Sudan.

“One of the key Ukroboronprom departments was led by the son of Serhiy Pashynsky. This despite the fact that Pashynsky was the chairman of the supervisory board of Ukroboronprom, MP, and chairman of the parliamentary defense committee. It directly contradicts the law on the prevention of corruption,” says ex-MP Dmytro Dobrodomov.

Related: Pashynsky changed his testimony during interrogation, - victim’s lawyer

In mid-2015, Ukraine held a tender for the supply of communications equipment for the army. An Israeli company, Elbit, one of the world's leading high-tech manufacturers of military electronics, took part in the competition. It delivers products to more than 50 countries, 10 of which are members of NATO. The Ministry of Defense was ready to sign a contract with Israel, as suddenly a new competitor appeared - te Turkish company Aselsan.

Aselsan is not too popular on the international market. Only the satellites of Turkey, Azerbaijan and two more countries, have taken it into service. And although Israeli communication systems have proven themselves much better, Ukrainian officials choose Turkish. Arguing for a nearly 30 percent lower price. The interests of the Turkish side were lobbied by Serhiy Pashynsky. And the Aselsan company is associated with his son Anton.

Engaged in the arms trade in the state-owned Ukrspetsexport, Anton Pashynsky pretty much increased his only declared state in 2018: a salary of 20,000 USD, an elite SUV Toyota Land Cruiser Prado 150 worth more than 40,000 USD. Prior to that, Pashynsky’s son drove a Toyota Camry for nearly 16,000 USD. The young official declared and expensive watches, in particular, the elite Swiss brand Ulysse Nardin, the cost of which is more than eight thousand dollars.

Related: MP Pashynsky’s shooting incident: Interviews underway

Ukrspetsexport is one of the most closed enterprises in Ukraine. All actions and contracts of its employees are classified under a secret. This allowed its employees to brazenly squander state funds. On October 4, 2019, investigators of the central apparatus of the State Bureau of Investigation detained Serhiy Pashynsky, but, as it turned out, not for corruption deals at all, but for shooting. Back in 2017, a politician shot into a man’s foot during a skirmish. However, they suspected him only now. They are charged with intentional infliction of grievous bodily harm.

The court left Serhiy Pashynsky in custody for 2 months while the pre-trial investigation is ongoing.

Experts are sure that scams with a cut of state funds for defense could not be extended without the knowledge of then-president Petro Poroshenko. It is believed that the commander in chief had a percentage, and it is possible that the largest.

Related: Pashynsky's case: litmus test for Ukraine's vicious judicial system

Andriy Portnov, a former deputy head of the presidential administration of President Yanukovych, claims that he has evidence of Poroshenko’s involvement in the plunder of the Ukrainian army and the transfer of funds to offshore. It was he who initiated most of the criminal proceedings against Poroshenko at the State Bureau of Investigation.

In addition, ex-head of the National Bank of Ukraine Valeria Gontareva is called the key figure in Poroshenko’s fraud.

"Poroshenko instructed the National Security and Defense Council to request the National Bank to withdraw this decision. The National Bank, on the initiative of Gontareva and based on a written request from the National Security and Defense Council, canceled currency control, lifted any restrictions on the allocation of funds of Ukrainian defense enterprises to Western and any other foreign companies,"  Portnov says.

Then they began to withdraw funds from defense enterprises to offshore companies. Most of these companies are registered in the Seychelles.

Related: If Pashynsky was the one who was shot, they would open a case of attempted murder, - MP Semenchenko

And here it is appropriate to recall Svynarchuk-Hladkovsky Jr., who is the honorary consul of the Republic of Seychelles. Another financial issue that the Hladkovskys settled under the rule of Gontareva is the restructuring of the frenzied debt of the Bogdan corporation in the state-owned Ukreximbank.

In the fall of 2019, almost daily information appears in the media about the detention of officials from the defense sector.

The director of the Ukroboronprom research institute was informed of the suspicion of embezzlement of nearly 40,000 USD.

Security Service detained the ex-deputy general director of the Mayak plant, who tried to earn 2.5 million USD from the sale of state property.

But Poroshenko’s partner Oleh Hladkovsky is now free, albeit with an electronic bracelet and on bail. After him, the SBU handcuffed the former deputy minister of economic development, Yuri Brovchenko, who was suspected of high treason. Oleh Hladkovsky is accused of lying in a declaration and is charged with abuse of power.

However, for some other reason, the fraudulent schemes we mentioned in Ukroboronprom are not mentioned in the charge for some reason.

Related: Person who attacked Pashynsky has once been prosecuted for beating his wife, - MP

“There are two versions of why the investigation went like this. The first - knowing that he plans to fly, they took what was ready for presentation and they stopped him in this way. They put on a bracelet and left it in Ukraine. In order to investigate. And the other is that they are actually not sufficiently trained, professionally trained to make charges of major corruption at Ukroboronprom,” Andriy Nikolayenko says.

Servants of the People assure that everything will be in accordance with the law, corrupt officials will be put behind the bars.

But will the team of President Zelensky bring making money on the war to an end, or will he just let the gloom and forget?

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